Foxconn Secures $1.1 Billion Loan Through 17 Banks

Foxconn Technology Group has secured $1.1 billion through a three-year loan, reflecting its strategic focus on the growing demand for AI servers, according to sources familiar with the matter.

The financing was facilitated by 17 banks, including institutions from Taiwan and global markets. The loan recipients include Foxconn Singapore, Falcon Precision Trading, and ECMMS Precision Singapore—subsidiaries of Foxconn, with the parent company acting as the guarantor.

Foxconn Chairman Young Liu previously predicted a surge in AI server demand, which is expected to continue into next year. He also emphasized that cloud-related products will become a core growth driver for Foxconn by 2025, rivaling the company's revenue from smartphone sales.

In its third-quarter financial results, Foxconn reported a revenue of NT$1.85 trillion, marking a 20% increase both quarter-over-quarter and year-over-year. The company's net profit reached NT$49.325 billion, a record high for the period, representing a 41% quarter-over-quarter increase and a 14% year-over-year rise. Earnings per share (EPS) for Q3 stood at NT$3.55, compared to NT$2.53 in Q2 and NT$3.11 in the same period last year.

Revenue distribution highlights Foxconn's diversified portfolio: consumer electronics accounted for 45%, cloud and networking solutions for 32%, computing devices for 17%, and components and other products for 6%.